Can Economic Development Influence General Election Outcomes? Evidence from Consumption Expenditure Trends of Indian States

2017 ◽  
Vol 2 (2) ◽  
pp. 131-150 ◽  
Author(s):  
Sacchidananda Mukherjee ◽  
Debashis Chakraborty

India left aside the economic philosophy of the import-substitution-led growth model in 1991, and increasingly integrated itself with the world economy. 1 1 The views expressed by the authors are personal and in no way represent the same of their respective institutes. While the country’s GDP growth is commendable in global comparison, devolution of actual development at the state level is a relevant research question. It is argued that India’s poor growth prospect in recent times is a result of the counterproductive policies adopted over the last decade, particularly since 2009. The present analysis contributes to this debate by exploring two key questions. First, it enquires how the government’s social sector policies, measured by inflation-adjusted average per capita social sector expenditure (PCSSE) and per capita grants-in-aid disbursement (PCGAD), contribute to economic development, as reflected through inflation and inequality-adjusted monthly per capita consumption expenditure (MPCE), across various states over the last two decades. Second, the paper also attempts to explain the influence of development dynamics, as reflected through growth in MPCE, on general election outcomes. The analysis indicates that government policies in the social sector influence the development process, which in turn may affect general election outcomes. Given these findings, it is argued that there is room for introspection on recent restructuring of centre–state financial devolutions.

Paradigm ◽  
1997 ◽  
Vol 1 (1) ◽  
pp. 119-124
Author(s):  
P.V. Rajeev

Infrastructure bottlenecks may impose severe constraints on the process of economic development in India. The pattern of infrastructure development has not been uniform in different parts of the country. In this paper an attempt is made to study the extent of disparities that exist in infrastructure development in major states in India. It has been found that States with higher per capita income are also the ones where better progress has been achieved in infrastructure development.


Subject Controversy over the 15th Finance Commission. Significance Finance ministers of three southern states met last month to discuss grievances over the central government’s 15th Finance Commission, which defines revenue redistribution across the federal union. Prime Minister Narendra Modi champions the notion of ‘cooperative federalism’, with central and state governments to share responsibility for economic development. As the 2019 general election approaches, political opponents of Modi’s Bharatiya Janata Party (BJP) are contemplating the formation of a ‘Federal Front’. Impacts The BJP will step up efforts to undermine Karnataka’s new Janata Dal (Secular)-Congress ruling coalition. While Congress may join a Federal Front, other parties will resist its attempts to assert leadership of the alliance. Modi will prioritise personal campaigning in southern India ahead of the 2019 election, hoping to win over critics.


Author(s):  
Milan Palát ◽  
Alois Kunc

The paper deals with identifying relationships between the household consumption expenditure and the human development index (HDI) on the sample of countries of the world. It provides an analysis of the HDI and the household consumption expenditure and on the basis of available statistic data carries out evaluation of the correlation analysis between household consumption expenditure and HDI in six groups of countries: developed countries, countries of the former eastern bloc, countries of the Near East, countries of South East Asia, Latin American countries and African countries. With respect to results of the analysis, statistically significant dependences were found between the development of household consumption expenditure per capita and HDI. At countries of the former eastern bloc, the dependence is always statistically significant but it does not reach such intensity. At African and some Latin American countries, the dependence is already statistically insignificant. Thus, we can summarize that with decreasing GDP per capita the dependence of the household consumption expenditure development on HDI weakens. In this respect, the validity of a hypothesis is also verified that household consumption expenditure is correlated to the HDI development at the global comparison on the more heterogeneous sample of countries than any other analyses published so far.


2015 ◽  
Vol 5 (2) ◽  
pp. 634-638
Author(s):  
Joanna Szwacka Mokrzycka

The objective of this article is to present the standard of living of households in Poland in comparison with other EU member states. The starting point for analysis was the economic condition of Poland against the background of other EU member states. The next step consisted of assessment of the standard of living of inhabitants of individual EU member states on the basis of financial condition of households and the structure of consumption expenditure. It was found that the differences within the EU in terms of economic development and the standard of living of households still remain substantial.


1993 ◽  
Vol 32 (4I) ◽  
pp. 411-431
Author(s):  
Hans-Rimbert Hemmer

The current rapid population growth in many developing countries is the result of an historical process in the course of which mortality rates have fallen significantly but birthrates have remained constant or fallen only slightly. Whereas, in industrial countries, the drop in mortality rates, triggered by improvements in nutrition and progress in medicine and hygiene, was a reaction to economic development, which ensured that despite the concomitant growth in population no economic difficulties arose (the gross national product (GNP) grew faster than the population so that per capita income (PCI) continued to rise), the drop in mortality rates to be observed in developing countries over the last 60 years has been the result of exogenous influences: to a large degree the developing countries have imported the advances made in industrial countries in the fields of medicine and hygiene. Thus, the drop in mortality rates has not been the product of economic development; rather, it has occurred in isolation from it, thereby leading to a rise in population unaccompanied by economic growth. Growth in GNP has not kept pace with population growth: as a result, per capita income in many developing countries has stagnated or fallen. Mortality rates in developing countries are still higher than those in industrial countries, but the gap is closing appreciably. Ultimately, this gap is not due to differences in medical or hygienic know-how but to economic bottlenecks (e.g. malnutrition, access to health services)


Author(s):  
Maryna Demyanchuk

Information and telecommunication services are currently a full-fledged resource for social development compared to traditional resources. The growth of the level of scientific and technological progress has led to the incredibly fast development paces in the sphere of information and communication technologies, which has a significant impact on the development of the economy. On the basis of a thorough analysis of the sectors of information and communication technologies and components of the ICT development index, the article substantiates the need for accelerated digitization of the majority of enterprises of different spheres of economic activity with the aim of qualitative development of Ukrainian economy in order to increase its competitiveness in the world. This is explained by the fact that information and technology represent the main economic resource in the period of formation of information society and digital economy, and enterprises of the sphere of communication and informatization are a catalyst for social and economic development of the country as a whole. Using a methodological toolkit of the theory of systematic and correlation-regression analysis, an economic-mathematical model of the development of the sphere of communication and informatization in the regions of the world and individual countries of the world is constructed. It is based on the existing pattern of leading development of the communications sector, but takes into account the degree of economy dependence on the ICT development, which in some regions and countries is 100%. This is due to the approaching mass availability of ICT services in some countries in these regions. On the basis of the constructed model, the forecasting of GDP PPP per capita was carried out, which showed faster rates of growth of the country’s economy with the growth of the development level of the sphere of communication and informatization and accessibility of telecommunication services. In turn, the availability of telecommunication services is influenced by the digital skills of society and the level of their prices, which has necessitated determining the dependence of GDP PPP per capita on prices for communication services of countries with varying degrees of socio-economic development. This makes it possible to identify reserves for improving the productivity of individuals while increasing the availability of telecommunications services.


Author(s):  
Lyubomyr Sozanskyy

In the article, a comparative interregional and cross-border assessment of socio-economic development of the Transcarpathian region is conducted. The results of the study are based on an analysis of the level and dynamics of such key indicators of economic and social development of the region as GRP per capita, employment rate, unemployment rate, average monthly salary, etc. According to the results of interregional comparisons, the low level of efficiency of the economy but the positive dynamics of some indicators of the labor market of the Transcarpathian region was revealed. In particular, among the regions of Ukraine in 2013-2017, the region was 22nd in terms of GRP per capita and 19th in terms of employment. At the same time, by unemployment, it rose from 15th in 2013 to 10th in 2018, and the average monthly wage ranged from 20th to 7th, respectively. Cross-border comparisons showed a significant lag behind the Transcarpathian region from the neighboring regions of Poland, Slovakia, Romania and Hungary for all considered socio-economic indicators. Thus, in particular, according to the indicator of GRP per capita, this lag compared to the Kosice region (Slovakia) in 2017 was 11.4 times. The average monthly salary in Transcarpathian region is 4 times lower than in the neighboring Kosice and Presov regions of Slovakia and the Podkarpackie voivodship of Poland. The positive dynamics in the direction of reducing the above-mentioned gaps in the level of socio-economic development of the analyzed regions in 2017-2018 are revealed. In addition, a regional peculiarity has been identified – the Transcarpathian region and the regions it borders, lag substantially behind the countries they belong to by the level of socio-economic development. As a result, the conclusion is drawn that the results of the conducted inter-regional and transboundary assessment of the socio-economic development of the Transcarpathian region will facilitate the development of inter-regional and interstate programs and strategies for the development of the Carpathian transboundary region to eliminate the identified imbalances.


Author(s):  
Joerg Baten ◽  
Christina Mumme

AbstractThis paper explores the inequality of numeracy and education by studying school years and numeracy of the rich and poor, as well as of tall and short individuals. To estimate numeracy, the age-heaping method is used for the 18th to early 20th centuries. Testing the hypothesis that globalization might have increased the inequality of education, we find evidence that 19th century globalization actually increased inequality in Latin America, but 20th century globalization had positive effects by reducing educational inequality in a broader sample of developing countries. Moreover, we find strong evidence for Kuznets’s inverted U hypothesis, that is, rising educational inequality with GDP per capita in the period until 1913 and the opposite after 1945.


2021 ◽  
Vol 45 (2) ◽  
pp. 261-289
Author(s):  
Eduard J. Alvarez-Palau ◽  
Alfonso Díez-Minguela ◽  
Jordi Martí-Henneberg

AbstractThis study explores the relationship between railroad integration and regional development on the European periphery between 1870 and 1910, based on a regional data set including 291 spatial units. Railroad integration is proxied by railroad density, while per capita GDP is used as an indicator of economic development. The period under study is of particular relevance as it has been associated with the second wave of railroad construction in Europe and also coincides with the industrialization of most of the continent. Overall, we found that railroads had a significant and positive impact on the growth of per capita GDP across Europe. The magnitude of this relationship appears to be relatively modest, but the results obtained are robust with respect to a number of different specifications. From a geographical perspective, we found that railroads had a significantly greater influence on regions located in countries on the northern periphery of Europe than in other outlying areas. They also helped the economies of these areas to begin the process of catching up with the continent’s industrialized core. In contrast, the regions on the southern periphery showed lower levels of economic growth, with this exacerbating the preexisting divergence in economic development. The expansion of the railroad network in them was unable to homogenize the diffusion of economic development and tended to further benefit the regions that were already industrialized. In most of the cases, the capital effect was magnified, and this contributed to the consolidation of newly created nation-states.


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